The President of the State Bank of India Dinesh Hara said on Friday that the improvement in capacity utilization to 74% from 69% shows that the economy is focused on its natural growth.
He said that among the great nations around the world, India is one of the most stable economies in the current situation.
“The way capacity utilization in the economy has improved from 69 percent to 74 percent and rising is a clear sign that the economy is ready for its natural growth,” Hara told a banking conference.
He said the country had dealt with the pandemic in the best possible way and the economy was doing quite well.
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Speaking about the demand for credit, Hara said that the retail and corporate sectors are witnessing momentum.
“I would say that (demand for credit) is universal. Our retail book continues to grow by over 16 percent annually. This is the trend of more than 4-5 years.
“On the corporate side, there was a time when corporations also raised money from the market, but now they are gradually turning to banks to take advantage of CP (trading paper) funding. So this is also a new engine of growth, “Hara said.
Speaking at the event, Standard Chartered CEO Zarin Daruvala said there had been an increase in demand for working capital loans over the past four to five months due to soaring commodity prices.
There is a demand for loans from the SME segment after the government launched the Emergency Credit Line Guarantee Scheme (ECLGS), she said.